Please make sure the answer is correct 100% The records of Parker Company indicate a July 31 cashbalance of $10,400, which includes undeposited receipts forJuly 30 and 31. The cash balance on the bank statement as ofJuly31 is $10,575. This balance includes a note of $2,250 plus$150 interest collected by the bank but not recorded in thejournal. Checks outstanding on July 31 were as follows: No.2670, $1,050; No. 3679, $675; No. 3690, $1,650; No. 5148,$225; No. 5149, $750; and No.5151, $800.On July 25, the cashier resigned, effective at the end of themonth. Before leaving onJuly 31, the cashier prepared the following bankreconciliation:Add outstanding$10,400Cash balance per books, July 31checks:No. 5148$225514975051518001,675$12,075Less undeposited receiptsCash balance per bank, July 311,500$10,5752,400$ 8.175Deduct unrecorded note with interestTrue cash, July 31Subsequently, the owner of Parker Company discovered thatthe cashier had stolen an unknown amount of undepositedreceipts, leaving only $1,500 to be deposited on July 31. Theowner, a close family friend, has asked for your help indetermining the amount that the former cashier stole.1. Determine the amount the cashier stole from ParkerCompany. Show your computations in good form.2. How did the cashier attempt to conceal the theft?

In Bank reconciliation, un-deposited receipts is an inflow of cash. Here, it is recorded in books…

Answered: 1. Determine the amount the cashier…

1. Determine the amount the cashier stole from Parker Company. Show your computations in good form. 2. How did the cashier attempt to conceal the theft?

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5E

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The records of Parker Company indicate a July 31 cash balance of $10,400, which includes undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $10,575. This balance includes a note of $2,250 plus $150 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows: No. 2670, $1,050; No. 3679, $675; No. 3690, $1,650; No. 5148, $225; No. 5149, $750; and No. 5151, $800. On July 25, the cashier resigned, effective at the end of the month. Before leaving on July 31, the cashier prepared the following bank reconciliation: Cash balance per books, July 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,400 Add outstanding checks: No. 5148 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $225 5149 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750…
The records of Parker Company indicate a July 31 cash balance of $10,400, which includes undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $10,575. This balance includes a note of $2,250 plus $150 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows:No. 2670, $1,050; No. 3679, $675; No. 3690, $1,650; No. 5148, $225; No. 5149, $750; and No. 5151, $800.
The records of Parker Company indicate a July 31 cash balance of $10,400, which includes undeposited receipts for July 30 and 31. The cash balance on the bank statement as of July 31 is $10,575. This balance includes a note of $2,250 plus $150 interest collected by the bank but not recorded in the journal. Checks outstanding on July 31 were as follows: No. 2670, $1,050; No. 3679, $675; No. 3690, $1,650; No. 5148, $225; No. 5149, $750; and No. 5151, $800. On July 25, the cashier resigned, effective at the end of the month. Before leaving on July 31, the cashier prepared the following bank reconciliation: Subsequently, the owner of Parker Company discovered that the cashier had stolen an unknown amount of undeposited receipts, leaving only $1,500 to be deposited on July 31. The owner, a close family friend, has asked for your help in determining the amount that the former cashier stole. Determine the amount the cashier stole from Parker Company. Show your computations in…
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